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/s
The makers claim that the in-game events occurred 50 years ago. So mid-1960s - or if you allow some leeway as early as 1950. The 'asylum' was closed in 1933-34, and the land is now part of a golf course. There is a cemetery between holes on the course.
Google is your friend, as is Wikipedia (although its article is very short - something that I hear it shares with the game under discussion).
That said, I welcome further information supporting the alleged story that this game was allegedly 'based upon' - as stated in those books, newspaper clippings and internet sources. In the meantime, I will happily point to false advertising when I see it - and in answering the OP's question there appears little doubt that this game falsely claims association with a 31 year tragedy at the beginning of the 20th century, that has absolutely nothing to do with the game's premise.
as far as false advertsing goes, this is steam it happens all the time and unless someone with lots of money can bring a lawsuit against valve and the developers for false advertising it will continue to happen. no longer is this world about rights of consumers. this world is all about companies and corporations rights. companies can put stuff on a credit report on you and ruin your life while all we can do is nothing. welcome to the world where money is power and without it you are a slave.
Corporations that forgot their customers tend themselves to be forgotten; it has happened before, it will happen again. You may have noticed how GoG is growing lately.
One thing that I find very funny is that when I first saw the telegram to Mr. Berry, I looked up the address on Google Maps to find that 840 Bates Rd, Rocky River(a suburb of Cleveland), Ohio is a house that is on the corner of Bates Road and... Berry Drive. Hmmm
Except there is an abandoned insane asylum near canton, ohio. It's in Athens... i've seen the famous corpse stain
https://maps.roadtrippers.com/stories/ohios-most-haunted-insane-asylum-has-a-permanent-corpse-shadow